A record 25.2 million Americans under the age of 35 lived with their parents in 2025, according to new research from Realtor.com, highlighting how rising housing costs and financial pressures continue to reshape traditional paths to independence.
The figure represents nearly one in three young adults and exceeds even the levels seen during the COVID-19 pandemic.
The trend challenges the long-held assumption that adults living at home are primarily unemployed or struggling to find work. Instead, researchers found that most young adults residing with their parents are employed.
Most Working-Age Adults At Home Have Jobs
According to Realtor.com senior economist Hannah Jones, roughly 70% of adults ages 25 to 34 who live with their parents are working.
That includes 71% of those ages 25 to 29 and 68% of those ages 30 to 34.
“Something about their income level, debt load, or the cost of housing in their market is keeping them home despite steady employment,” Jones said.
The findings suggest that having a full-time job is no longer enough for many young adults to afford independent living.
Housing Affordability Remains A Major Obstacle
Housing costs have risen sharply in recent years, making it increasingly difficult for young adults to move out on their own.
In 2025, the median home price reached $430,000, up 34.4% from 2019. Median asking rents climbed to $1,673, a 17.9% increase during the same period.
At the same time, Realtor.com estimates the United States faces a housing shortage of approximately 4 million homes.
The impact is especially evident among older young adults. About 20.4% of adults ages 25 to 29 lived with their parents in 2025, nearly six percentage points higher than in 2000. Among adults ages 30 to 34, the share reached 12.7%, nearly double the 7.1% recorded at the start of the century.
Researchers estimate there are nearly 4.9 million more adults under 35 living with their parents today than there would have been if early-2000s living patterns had remained unchanged.
Student Debt And Other Expenses Add Pressure
Debt burdens are also contributing to delayed independence.
While older Americans often carry mortgage debt that can build wealth over time, younger adults tend to owe money on student loans, auto loans, and credit cards.
Jones said increased college attendance over the past 25 years likely plays a role, as student debt can significantly reduce the purchasing power of entry-level salaries.
Those financial obligations often leave young workers with fewer options for securing housing, even when they maintain steady employment.
Living At Home Doesn’t Always Mean A Free Ride
Industry experts say many young adults living with their parents are contributing financially to the household.
According to Pew Research Center data cited in the report, 72% of young adults living at home help cover expenses. About 65% contribute toward groceries, utilities, or household bills, while 46% help pay rent or mortgage costs.
“There’s a huge misconception that living at home automatically means someone is saving a fortune,” said real estate agent Jim Chamberlin, per Realtor.com. “They aren’t just getting a free ride under their parents roof.”
As a result, living with family may reduce expenses but does not always create enough savings to make homeownership attainable.
Multi-Generational Living Becoming More Common
The growing number of adults staying home is also changing parents’ housing preferences.
Chamberlin said more buyers are looking for homes that can accommodate three generations under one roof, a trend he rarely encountered earlier in his career.
Some parents who once planned to downsize after their children moved out are now staying in larger homes because their adult children continue to live with them.
In some households, the arrangement benefits both generations. Adult children help cover housing expenses, while parents avoid the costs of downsizing and, in some cases, large tax bills associated with selling highly appreciated homes.
Rather than serving as a temporary solution, experts say multi-generational living is increasingly becoming a long-term financial strategy as families adapt to a housing market where affordability remains out of reach for many younger Americans.
